BOC on news wires
- Recent uptick in non-commodity exports encouraging, but uncertainty lingers
- Can expect weaker C$ to support export levels but its influence on growth rate has faded
- Reiterates risk to profile for inflation have tilted somewhat to downside
- There's still material slacking Canadian economy
- More slack and labor market than unemployment rate suggests. Modest wage growth and involuntary part-time work
- There's been progress with a few setbacks, as Canada goes through important adjustments
- Will take time before Canadian economy is fully adjusted to low price shock
- It is possible that the impact of lower oil prices on the US economy is less positive than anticipated
- He expects US activity recover over next quarters as household spending and labor remain robust
- Housing measures from federal government will help you get risks to financial system from household imbalances
On balance the comments seem a bit more dovish. However, the USDJCAD has moved back below the 200 day MA at the 1.32118 level, and follow thru selling took the price down to 1.3196.. The price has bounced back to retest that MA line. Has the tide turned technically? Crude oil remains above the $50 level at $50.33.
